Exam 3: Financial Statements and Ratio Analysis

Common stock dividends paid to stockholders is equal to the earnings available for common stockholders divided by the number of shares of common stock outstanding.

(True/False)

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Question 61

The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they come due.

(True/False)

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Question 62

The amount paid in by the original purchasers of common stock is shown by two entries in the firm's balance sheet-common stock and paid-in capital in excess of par on common stock.

(True/False)

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Question 63

The total asset turnover ratio measures the liquidity of a firm's assets.

(True/False)

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Question 64

The DuPont system allows a firm to break its return on equity into a profit-on-sales component,an efficiency-of-asset-use component,and a liquidity component.

(True/False)

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Question 65

Given the following balance sheet,income statement,historical ratios and industry averages,calculate the Pulp,Paper,and Paperboard,Inc.financial ratios for the most recent year.Analyze its overall financial situation for the most recent year.Analyze its overall financial situation from both a cross-sectional and time-series viewpoint.Break your analysis into an evaluation of the firm's liquidity,activity,debt,and profitability. Income Statement Pulp,Paper,and Paperboard,Inc. For the Year Ended December 31,2019 Balance Sheet Pulp,Paper,and Paperboard,Inc. December 31,2019 Historical and Industry Average Ratios Pulp,Paper and Paperboard,Inc.

(Essay)

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Question 66

In ratio analysis,the financial statements being used for comparison should be dated at the same point in time during the year.If not,the effect of seasonality may produce erroneous conclusions and decisions.

(True/False)

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Question 67

Which of the following is used to analyze a firm's financial performance over different years?

(Multiple Choice)

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Question 68

The statement of cash flows provides insight into a firm's operating,investment,and financing cash flows and reconciles them with changes in its cash and marketable securities during the period of concern.

(True/False)

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Question 69

On the balance sheet,net fixed assets represent ________.

(Multiple Choice)

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Question 70

The ________ ratio indicates whether a firm will be able to meet interest obligations due on outstanding debt.

(Multiple Choice)

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Question 71

Present and prospective shareholders are mainly concerned with a firm's ________.

(Multiple Choice)

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Question 72

Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31,2019 Balance Sheet Dana Dairy Products December 31,2019 -The inventory turnover for Dana Dairy Products in 2019 was ________.(See Table 3.2)

(Multiple Choice)

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Question 73

As the financial leverage multiplier increases,this may result in ________.

(Multiple Choice)

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Question 74

The ________ ratio measures the proportion of total assets financed by the firm's creditors.

(Multiple Choice)

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Question 75

ABC Corp.extends credit terms of 45 days to its customers.Its credit collection would likely be considered poor if its average collection period was ________.

(Multiple Choice)

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Question 76

The ________ ratio reflects how much investors are willing to pay for a company's stock per dollar of earnings that the company generates.

(Multiple Choice)

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Question 77

Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000,then average purchases per day are and the average payment period is .

(Multiple Choice)

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Question 78

A firm with a low net profit margin can improve its return on total assets by ________.

(Multiple Choice)

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Question 79

Publicly owned corporations with more than $5 million assets are required by the Securities and Exchange Commission (SEC)to provide their stockholders with an annual stockholders' report.

(True/False)

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Question 80

Showing 61 - 80 of 218

Common stock dividends paid to stockholders is equal to the earnings available for common stockholders divided by the number of shares of common stock outstanding.

The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they come due.

The amount paid in by the original purchasers of common stock is shown by two entries in the firm's balance sheet-common stock and paid-in capital in excess of par on common stock.

The total asset turnover ratio measures the liquidity of a firm's assets.

The DuPont system allows a firm to break its return on equity into a profit-on-sales component,an efficiency-of-asset-use component,and a liquidity component.

In ratio analysis,the financial statements being used for comparison should be dated at the same point in time during the year.If not,the effect of seasonality may produce erroneous conclusions and decisions.

Which of the following is used to analyze a firm's financial performance over different years?

The statement of cash flows provides insight into a firm's operating,investment,and financing cash flows and reconciles them with changes in its cash and marketable securities during the period of concern.

On the balance sheet,net fixed assets represent ________.

The ________ ratio indicates whether a firm will be able to meet interest obligations due on outstanding debt.

Present and prospective shareholders are mainly concerned with a firm's ________.

Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31,2019 Balance Sheet Dana Dairy Products December 31,2019 -The inventory turnover for Dana Dairy Products in 2019 was ________.(See Table 3.2)

As the financial leverage multiplier increases,this may result in ________.

The ________ ratio measures the proportion of total assets financed by the firm's creditors.

ABC Corp.extends credit terms of 45 days to its customers.Its credit collection would likely be considered poor if its average collection period was ________.

The ________ ratio reflects how much investors are willing to pay for a company's stock per dollar of earnings that the company generates.

Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000,then average purchases per day are and the average payment period is .

A firm with a low net profit margin can improve its return on total assets by ________.

Publicly owned corporations with more than $5 million assets are required by the Securities and Exchange Commission (SEC)to provide their stockholders with an annual stockholders' report.

The Role of Managerial Finance

The Financial Market Environment

Long- and Short-Term Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows and Risk Refinements

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Filters

Exam 3: Financial Statements and Ratio Analysis

Common stock dividends paid to stockholders is equal to the earnings available for common stockholders divided by the number of shares of common stock outstanding.

The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they come due.

The amount paid in by the original purchasers of common stock is shown by two entries in the firm's balance sheet-common stock and paid-in capital in excess of par on common stock.

The total asset turnover ratio measures the liquidity of a firm's assets.

The DuPont system allows a firm to break its return on equity into a profit-on-sales component,an efficiency-of-asset-use component,and a liquidity component.

In ratio analysis,the financial statements being used for comparison should be dated at the same point in time during the year.If not,the effect of seasonality may produce erroneous conclusions and decisions.

Which of the following is used to analyze a firm's financial performance over different years?

The statement of cash flows provides insight into a firm's operating,investment,and financing cash flows and reconciles them with changes in its cash and marketable securities during the period of concern.

On the balance sheet,net fixed assets represent ________.

The ________ ratio indicates whether a firm will be able to meet interest obligations due on outstanding debt.

Present and prospective shareholders are mainly concerned with a firm's ________.

Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31,2019 Balance Sheet Dana Dairy Products December 31,2019 -The inventory turnover for Dana Dairy Products in 2019 was ________.(See Table 3.2)

As the financial leverage multiplier increases,this may result in ________.

The ________ ratio measures the proportion of total assets financed by the firm's creditors.

ABC Corp.extends credit terms of 45 days to its customers.Its credit collection would likely be considered poor if its average collection period was ________.

The ________ ratio reflects how much investors are willing to pay for a company's stock per dollar of earnings that the company generates.

Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000,then average purchases per day are ________ and the average payment period is ________.

A firm with a low net profit margin can improve its return on total assets by ________.

Publicly owned corporations with more than $5 million assets are required by the Securities and Exchange Commission (SEC)to provide their stockholders with an annual stockholders' report.

The Role of Managerial Finance

The Financial Market Environment

Long- and Short-Term Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows and Risk Refinements

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Filters

Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000,then average purchases per day are and the average payment period is .